When external costs are present,
A) competitive, unregulated markets are efficient.
B) transaction costs will be high.
C) a tax might be able to create efficiency.
D) property rights have already been established.
C
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Which of the following is a flaw in Malthus' population theory?
A. His belief that growth in real GDP cannot exceed population growth real GDP despite technological advancements. B. His belief that any increase in income would boost population growth failed to take into account the fact that higher incomes increase this opportunity cost and therefore reduces the number of children people want. C. Rising incomes makes it more affordable for families to have more children and to educate their children so that they become productive members of society. D. He failed to take into account that over time, as countries develop, the agricultural shrinks, reducing the need for people to have large families to help out in the family farm.
In an economy with ________, there are more prices than in an economy with ________
A) barter; money B) fiat money; commodity money C) fiat money; barter D) money; barter